Contents

THE PRODUCT - Airtel Mobile Services ......................................................................................................... 4 OBJECTIVES ................................................................................................................................................... 5 Corporate Objectives ................................................................................................................................ 5 Marketing & Sales Objectives ................................................................................................................... 5 Financial & Operational Objectives........................................................................................................... 5 Customer Retention .................................................................................................................................. 5 SITUATION ANALYSIS .................................................................................................................................... 6 SWOT: ....................................................................................................................................................... 6 PORTER’S 5 FORCES .................................................................................................................................. 8 COMPANY & COMPETITOR ANALYSIS......................................................................................................... 11 Product features matrix .............................................................................................................................. 11 Objectives of Competitors: ......................................................................................................................... 13 COMPETITOR ANALYSIS .............................................................................................................................. 14 COMPETITOR STRATEGY ............................................................................................................................. 17 Applying 4P Marketing Mix to Airtel ........................................................................................................... 18 Profits ...................................................................................................................................................... 21 Value Chain Analysis ................................................................................................................................... 22 Differential Advantages .......................................................................................................................... 23 Maintain Specialty .................................................................................................................................. 23 Hope for Market Growth ........................................................................................................................ 24 Maintain Cost Advantage........................................................................................................................ 25 Outstanding Success ............................................................................................................................... 26 Market Segmentation ................................................................................................................................. 27 Targeting ..................................................................................................................................................... 28 Evaluation of Market segments .............................................................................................................. 28 Selecting a targeting strategy ................................................................................................................. 29 The Target Market Segments.................................................................................................................. 29 Positioning .................................................................................................................................................. 31 CONSUMER BEHAVIOUR ............................................................................................................................. 33 ASSUMPTION IN PLANNING PROCESS ........................................................................................................ 38 2|Page

THE PRODUCT STRATEGY ............................................................................................................................ 44 Strategy – Marketing Communications Programmes ................................................................................. 46 Integrated Marketing Communications Programs ................................................................................. 46 Pricing Strategy ....................................................................................................................................... 47 Channel Strategy ..................................................................................................................................... 48 Research Strategy ................................................................................................................................... 49 MONITORING & CONTIGENCY PLANS ......................................................................................................... 50 Recommended Marketing Strategies for Airtel .......................................................................................... 51 REFERENCES ................................................................................................................................................ 53

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THE PRODUCT - Airtel Mobile Services
Airtel Mobile services is one of the four strategic business units of Bharti-Airtel limited formerly known as Bharti-Tele Ventures LTD (BTVL). The mobile services division of the company is branded as Airtel. Going by the subscriber base Bharti is the fifth largest mobile operator in the world, with an estimated base in about 18 countries. Airtel currently offers both 2G and 3G services depending on the country of operation. It has recently secured the 3G licenses in 13 telecom circles of India and plans to launch 3G services by the month of October this year.2 The cellular services division of Airtel has also entered the smart phone market segment. On 19th October 2004 Airtel announced the launch of Black Berry Wireless Solutions in India. By August 2008 Airtel had signed up with Apple for the launch of Apple 3G iPhone services. It has however been unable to capitalise and emulate the success of Apple iPhone on the account of high pricing and contract bond accompanying these services. Considering the fact that India is now the second largest telecom market in the world and more importantly the fastest growing market globally (about 19 million additions a month), there have been several new entrants in the markets lately.3 This has led to ever lowering tariffs and a decrease in the revenue of existing players. Fresh acquisition of customers is then no longer a guarantee to increase in revenue. As a consequence in addition to the lower calling rates, the operators have been forced to provide a host of value added and auxiliary services. Here Airtel is already leading the way in areas of mobile commerce, banking etc. As the Indian telecom industry enters its third phase, growth in the markets are bound to mirror the growth in the economy. This provides valuable pointers to the next driver of growth – the rural India – where mobile penetration levels still remain an abysmal 15%.4 Airtel has been looking to expand to learn and expand in the rural/low income market segment. In this regard Airtel has already ventured into providing mobile financial services, mobile money transfers to customers in rural areas, further leveraging its existing base of cellular subscribers.

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OBJECTIVES
Corporate Objectives
To dominate the cellular services industry by being the market leader in products and services category in wireless market and lead on all important fronts viz. market share, brand loyalty and customer satisfaction.

Marketing & Sales Objectives
1. To achieve higher penetration in rural markets by capitalising on the existing base to reach out to new subscriber markets. 2. To create markets for Value added services by integrating more features into the existing scheme of things. 3. To reach out to different market segments with products and services customised to cater to the segment specific needs. 4. To study the brand loyalty within the existing set to better understand and appreciate our product differentiation. And also how we can build upon it further. 5. To engage with customers continuously to be able to adapt to the changing market needs and consumer behaviour. 6. To explore the potential for broadband data markets by exploring the scope of 2G and 3G cellular services in urban/rural markets.

Financial & Operational Objectives
1. To expand and outsource capital intensive tasks (involving building & maintenance). 2. To be able to break even on the capital spent in securing 3G licensing services by improving on the ARPU and ensuring better penetration into the SaaS market by broadband data services. 3. To ensure 3G services usage generates enough revenues per annum to enable normal pay back and returns.

Customer Retention
1. To leverage the existing base of customers by engaging them with new products and services launches on a periodic basis 2. Empower and engage with consumers on a regular basis to ensure customer satisfaction and value delivery.

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SITUATION ANALYSIS
SWOT:
Strengths 1. It is the largest cellular service provider in India with a subscriber base of over 135 million (June 2010) and market share of 29.2%. 2. Airtel is currently operating in 18 different countries in Asia and Africa which reflects its global presence. 3. Airtel is in with strategic alliance with majors from other telecom leaders like Ericsson, Nokia Siemens Network and Sing Tel which gives insight into other areas of telecommunication. 4. Mobile Business Unit of Airtel is a profit making division where profits soared by 3% to Rs. 8227 crore giving enough cash in hand. 5. Tie-ups with BlackBerry Wireless Solution, Apple Iphone 3G and Facebook give access to emerging new growth markets. Weakness 1. Airtel outsources everything except marketing and sales which makes it dependent on other players. 2. Dominance within India is limited to circles in Northern and Eastern India with high competition in Southern India. 3. Airtel focuses on nationwide advertisement strategies which give other regional players to dominate in several regions. 4. Bharti did not own majority of its own network towers which hampers the coverage area and give advantage to its competitors. Opportunities 1. With the help of its wide national presence Airtel can aggressively venture into new emerging areas like mobile banking, 3G Technology 2. Strategic position of Airtel in international market can help to acquire new business divisions in other countries to expand the business horizontally. 3. With the huge cash base Airtel can hugely invest in innovative products like Airtel Worldwide SIM and Airtel App Central which is India’s first mobile app store. 4. The company can promote its worldwide presence by sponsoring more international events like Twenty-20 World Cup and UEFA Champions League.

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Threats 1. There is always a potential for entry of foreign player or revival of domestic competitor like Vodafone from Hutch. 7|Page .5. thereby reducing the market share of Airtel. With the right regional marketing strategies Airtel can acquire the dominance in regional market and increasing the market share of the company. 2. Companies like Virgin and Tata Docomo are aggressively targeting younger generation with there new innovative products and applications.

The product offering is similar from almost all players with the same basic product and similar value added services.13 24. but these are soon offered by competitors as well b.76% 50.67 68.9 Subscriber base of mobile services (GSM and CDMA): 2007-2009 Service Providers Bharti BSNL Reliance Vodafone Tata Idea/Escotel Aircel Others TOTAL 2007 37. c. The sector offers tremendous growth opportunity.12 38.61 9. encouraging foreign players to enter the Indian market.33 24 10.6%. 2.48 11.02 14.84% 27. Threat of new entrants-HIGH a.85% 44. Bargaining Power of buyers.18% 10.11 2008 61.VERY HIGH a.53% 58. Lack of product differentiation.01 5. TRAI’s stated objective is to” encourage greater competition in the telecom sector together with better quality and affordable prices” and in line with that. threat of new entrants is high.07 2009 93.79 45.03% 74.06% 1.92 52. There are short term gains that one player may have from innovation/ first mover advantage into a new value added service.14 30.76 391. There are multiple service providers with as many as 12-13 service providers in all circles.6 While Circle A.PORTER’S 5 FORCES Mobile Services Industry – Structure: Mobile services in India are fast growing with a YoY growth rate of 58. Department of Telecom and the Telecom Regulatory Authority of India (TRAI) are the policy formulating and regulatory bodies.15 72.79 44.06% in 2009.44 261.7 Given the profit opportunities and regulatory environment. ensuring a high rate of increase in the overall subscription base. total telecom penetration in rural markets is expected to reach 40% compared to the current tele-density of 16.70% 55. The government presently allows FDI of 76% in the sector.76 Source: TRAI YoY over 2009 51. By 2012. Extremely low switching costs in moving from 1 service provider to another 8|Page .17% in 2008 and 50.99 165.77 35.98 40.35% 62. has been following a “liberal regulatory regime” b. Circle C subscription base is increasing at the fastest rate. Circle B and Metro circle is already nearing very high penetration levels.51 6.89 18.01 26.99 28.44 16.

Hinduja TMT. data services on cellular phones have become an essential product feature. Wired-lines b. Nortel. Tower maintenance and other infrastructure: BhartiInfratel and Indus towers d. broadband service.Skype. Teleperformance. a. BSNL. Bargaining power of suppliers-VERY LOW Airtel outsources most of its operations. VSAT phones Additionally. d. leased lines.very wide variety of choice for the customers. Tata/ Reliance. Siemens(7 circles). 5. fringetc f. Call center partners: IBM Daksh. mobile services face a significant threat from local ISPs. Multiple service providers. CDMA c.Walky phones e. IT system partner: IBM c. Video telephony d. Competitive landscape implies consistently better offers and deals for customers. Mobile services are competing with products such as a. Airtel only looks at getting the best deal.c. Internet telephony. Blackberry and iPad. b.6 9|Page . Current Rivalry Airtel is the current market leader in the mobile service (GSM) sector with 31% market share. On this front. Huawei. Idea are its major competitors. 3. Mphasis. Vodafone. google. Since contracts are allocated to the highest bidder. Firstsource& Aegis 4. Pressure from substitutes-HIGH The communications space is very dynamic with new technology (3G and 4G) and products flooding the market. This mechanism provides Airtel with a high degree of flexibility. Network outsourcing/maintenance partners: Ericsson(15 circles).

6 By 2012. the total telecom subscriber base is expected to reach approximately 700 million to include about 650 million wireless users and approximately 50 million fixed line users. Category Capacity: As of January 2010.7 10 | P a g e .6. the overall tele-density was recorded at 49. driven by a rise in the demand for communications from semi-urban and rural India.81 million.5 per cent with a total telephone subscriber base of 581.

Call Divert. Apple IPhone is available in India either through BhartiAirtel or Vodafone service provider. Service that provides instant chat with friends with any mobile number. By analyzing the table we can get a very clear idea of the strength and weakness of Airtel product relative to the other competitors. Call wait. Mobile Office. anywhere in India. Notes (As mentioned in Table below): 1. photos and emoticons. It includes services like Call Conferencing. 7. mVoip or mobile Voice over Internet Protocol is an extension to VOIP through which a mobile handset can be integrated into a VoIP network 5. It includes service like Send/Receive Emails. A user can exchange text. Process of receiving updates automatically on your phone without the need of initiating a request every day.COMPANY & COMPETITOR ANALYSIS Product features matrix Table 1 depicts the product feature matrix to simplify the difference between the product features or services offered by Airtel Mobile as compared to other competitors in the market. Fax and Data 4. Missed Call Alert 3. anywhere in the world. communities in order to SMS all of them at the same time with reduced rates per SMS 11 | P a g e . Users can create their own groups. No other service providers has given right to sell IPhone in India. Call Hold. 6. 2. Customers can SMS to multiple contacts.

Various Operators Mobile Normal Users GPRS Prepaid Service Postpaid Service Subscription Service1 Call Management Service2 Data Service3 SMS Directory Language SMS MMS Service National Roaming E-Recharge Business Users Blackberry m VOIP4 ISD Calling Cards Operator Services Just Dial Conversion from Prepaid to Postpaid or vice versa Customer Care Caller Tunes Voice SMS Additional Features Apple Iphone5 PC2Mobile6 Corporate Group Messaging7 Customized Chatting Client m-Commerce Phone Backup                                     No      No No                                      No       No  No            No No  Product Features                     No     No  No        No          No      No     No  No            Table: Product feature matrix of Airtel Mobile 12 | P a g e .

previously it was Essar who was in the telecom area since 1994. 5) Tata Docomo: Docomo is the global leader in Value Added Services. 3) Idea: Idea is one of the few companies that are seen as an innovative. BSNL is looking forward to maintain this position in coming years. It’s collaboration with Tata as Tata Docomo was launched in 2009. Public Booth Telephony and Wire-line Services. 13 | P a g e . Reliance Communications’s objectives include focus on customer delight and hence business productivity and to offer communication services in all sphere to all individual customers and business in India.Objectives of Competitors Below are the current objectives of the competitors. 1) Vodafone Essar: Vodafone Essar is the Indian subsidiary of Vodafone group. It also aims to expand its coverage area nationally as well as internationally to cater to more consumers. 6) BSNL:BSNL is World's 7th largest Telecommunications Company providing comprehensive range of telecom services. Despite its late entry into telecom sector Tata Docomo is aiming at broaden its telephone services to include Mobile Services. customer focused brand. 4) Aircel: Aircel is one of the recent entrants into the telecom sector with the aim of becoming India’s pioneer in mobile technology and mobile services. With its wide coverage area in terms of rural penetration in not only Mobile Telephony but also in broadband has contributed in achieving top position. an assessment of these objectives can give a brief idea about the current strategy of the competitors and how aggressive it will be in future. With its aggressive marketing campaign it has already gained a significant amount of market share. And hence company is aiming to continue its growth in whole of India. Its vision is to expand its mobile operations to all sectors of people according to their individual needs.Company’s main objective is to leverage the global position of Vodafone n India as well and become the top player in terms of market share as well as revenue in Indian circle. Wireless Desktop Phones. 2) Reliance:ADA Group’s flagship company.

49% 0.93% 23.75% MTNL BPL 14 | P a g e .48% 0.10% BSNL IDEA Aircel Reliance Telecom 21.01% 6. January 09 4.75% Vodafone Essar 32.64% Reliance Telecom MTNL BPL April 2009 2.26% Bharti Airtel 1.82% 20.57% Vodafone Essar 29.38% 17.94% BSNL IDEA Aircel 15.78% Bharti Airtel 6.COMPETITOR ANALYSIS Presented below is the pictorial representation of Airtel's market share in Indian telecommunication market from January 2009 through April 2010.99% 14.13% 1.

55% 24.80% 31.33% 0.88% 15.17% 24.13% MTNL Loop Mobile 15 | P a g e .25% 0.11% 1.July 2009 4.25% Vodafone Essar BSNL IDEA Aircel Reliance Telecom 14.07% 1.00% Vodafone Essar BSNL IDEA Aircel Reliance Telecom 15.72% Bharti Airtel 7.12% MTNL Loop Mobile October 2009 4.83% 15.08% 32.72% Bharti Airtel 7.

96% Uninor Loop Mobile Stel Source of Figures: www.26% 0.77% 8.86% 4.January 2010 1.87% Loop Mobile Uninor STel April 2010 1. This can be attributed to the entry of new payers in the cellular market. it is important to note that while all other players have been losing market share over the period.11% 1.00% Bharti Airtel Vodafone Essar 3.00% IDEA BSNL Aircel Reliance Telecom MTNL 15. 16 | P a g e .com Looking at the above market share data.16% 14.coai.67% 0.17% 0.13% Bharti Airtel Vodafone Essar 8. However. Airtel’s closest competitor Vodafone Essar has been able to hold on to its market share.16% 0.88% 30.64% 0.19% 23.69% 0. it is clear that BhartiAirtel has been losing market share over the last one year.08% 23.95% IDEA BSNL Aircel Reliance Telecom MTNL 15.38% 30.08% 15.

BSNL/MTNL: BSNL and MTNL are GoI owned telecom companies. While BSNL is the all India operator. Tata Docomo: Tata DOCOMO is Tata Teleservices Limited's (TTSL) telecom service on the GSM platform-arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. However. MTNL operates exclusively in the metros. Idea seems to be concentrating on only holding on to its market share. Tata DOCOMO which operates in 18 circles has risen to be the biggest force in the cellular market in the last one year. Vodafone has concentrated on building its image as a customer friendly organization as is reflected in its tagline “Happy to help”. It has tried to build a market for itself by providing superior service quality and value added services. Also. 4. majorly operates in the CDMA market and has recently entered the GSM market. This may be attributed to the fact that the Reliance has not differentiated its services and has engaged in a price-war with the existing competition. Only recently. Ever since. adding over 60 million customers. it has entered into the other circles and is now functional in 23 circles. Tata DOCMO has garnered market share through innovation and aggressive telemarketing. Aircel: Aircel. Idea: Owned by the Aditya Birla Group. 3. it has never been close to being the numerouno. it has not been received too eagerly by the consumers. Reliance Communication: Reliance Comm. Idea’s biggest strength is its consistency.88%. 5. It has held on to nearly 15% of market share and the number does not seem to change. However. It has not gone into aggressive marketing mode and concentrates on maintaining its subscriber base by providing the lowest call rates in the market. owned majorly by Maxis communications has been the top service provider in South India for very long. BSNL exploited its political clout to be the first to enter the 3G segment while its competitors waited for an auction. 2. BSNL’s entry in the 3G segment saw an unprecedented increase in its market share from 17. the market share dropped back to previous levels in the next quarter. Vodafone Essar: Vodafone is a British Telecom giant and took over Hutchison Essar’s operations in India in February 2007. BSNL/MTNL is struggling to change its image of being the service provider for the elderly. With its aggressive telemarketing campaign. Aircel has seen quick growth in the last one year with its market share rising steeply from 6.5% to 23. 6. 17 | P a g e .COMPETITOR STRATEGY A brief analysis of all major competitor strategy is listed under: 1.6 Aircel does not enter into a price war with its existing competitors.5% in Q1 of 2009. in its marketing campaign there seems to be no differentiation between its CDMA and GSM services. Indian consumer’s faith in government institutes is BSNL’s biggest advantage. Vodafone has been able to maintain its market share over the last one year. Idea has been operating in the cellular market since the very beginning.5 However.26% to 8.

It includes three countries in Indian subcontinent: India. payment centres and many other facilities. 18 | P a g e . e) Roaming: Airtel was the pioneer in reducing roaming tariffs.Applying 4P Marketing Mix to Airtel 1) Product: The 'products' offered by the Mobile Services unit of Airtel include the following:  Prepaid  Post-paid  Blackberry wireless handheld  Value-added services  Solutions for business enterprises  International facilities through calling cards and prepaid world SIMs  m-commerce 2) Price: Tariff analysis of major players in the market reveals that Airtel is not the cheapest service provider. quick links to store locations. subscribe to any value added services and get more information on them. Easy Recharge: Airtel was the pioneer of e-recharge facility being provided to customers. useful telephone numbers. 24-hour Recharge via ATM: Allows recharge of Airtel Prepaid round-the-clock at nearest ATM. Sri Lanka. They are in an advantageous position due to offers like:  Variable customer based pricing strategies  Flexible pricing mechanism Over the last few years. Airtel has provided its customers various facilities on the price front: a) b) c) d) Total Cost Control: Customers can recharge their phones with a denomination of their choice. However. 3) Place: Airtel's aim is to help customers as quickly and as efficiently as possible at first point of contact. Internet Recharge: Airtel prepaid can be recharged online. The major point of contact is the Airtel Relationship Centre where one can get a new Airtel connection. pay bills or get a new handset. The customers have the option to email Airtel directly. customer survey shows that the usability of Airtel’s online recharge portal is poor as compared to that of its competitors. Airtel provides its customers with the following facilities:  Extensive presence across 23 circles  Airtel customer care touch points – setting up convenient service centres in market places helps to increase visibility and improves accessibility to customers.  Internationally offers telecom services in 18 countries across Indian subcontinent and Africa.  Distributors like grocery stores/ small outlets etc.

Niger. As a result of the deal. Nigeria. and Sachin Tendulkar BhartiAirtel signed a five-year deal with ESPN Star Sports to become the title sponsor of the Champions League Twenty20 cricket tournament. Sponsoring socially relevant community programs across country. Samsung and HTC to provide Airtel connections as a part of the package. educational facilities for marginalised children. Recently Bharti unveiled its new logo.  Clearly. Tanzania.  19 | P a g e . AR Rahman. Sierra Leone. That is because its brand Airtel is so successful. namely: Burkina Faso. Malawi. Chad. Airtel is known for being the first mobile phone company in the world to outsource everything except marketing and sales. 4) Promotion: Airtel is one of the best known brands in India. Madagascar. This is easily visible in the following cases:   Celebrity endorsers like Shah Rukh Khan. 2009 Airtel signed a major deal with Manchester United Football Club. Gabon. Other than projecting the image of being the best in business. Republic of the Congo. Not as many people relate with Bharti as much as they do with Airtel. Airtel has consciously made an effort to make the best in business its brand ambassadors. concerts and boat races. Democratic Republic of the Congo. organising painting competitions for children. The tournament itself is named "Airtel Champions League Twenty20. Manchester United is arguably the world’s best football team. Sponsoring the Champions League is also a conscious effort of relating with the champion/best." On May 9. Airtel’s marketing team’s emphasis lies in relating with the customer and his/her idols. Also. Sponsoring popular events like half marathons. Uganda and Zambia. for example. Airtel gets the rights to broadcast the matches played by the team to its customers.Bangladesh and fifteen African countries. Ghana. all its celebrity endorsers are the best in their field. Kenya. Bharti is now piggybacking on the success of its brand Airtel to create a giant conglomeration. Airtel engages in marketing activities typical of all firms of its size:    Extensive print and video advertising Tie up with leading handset manufacturers like Nokia.

Kahinbhi'. They capture the importance of Airtel in consumers' lives.Airtel’s advertisements are always very distinct and present the brand as very energetic. Airtel came up with many ad-specific taglines like 'Kabhibhi. youthful and essential. 20 | P a g e . 'Touch Tomorrow' and the current tagline 'Express Yourself'.

Profits Airtel’sYoY revenue growth from the mobile services business has slowed. the subscription growth average2 for BhartiAirtel has been slower than for competitors.000 - 270. In the non metro circles. '000) Slower net income growth in 2010: Airtel’s net income growth has slowed in 2010 particularly in the mobile services business. BhartiAirtel posted net profits of Rs.000.249.000.000.000.517 300. in A circle.000 50.348 1 2 3 Figure: Total Revenues for 2009-10 (in Rs. in fact. BhartiAirtel’s revenue growth has been lesser than the industry average. 93 Billion. Tata DoCoMo’s plan to charge per second for calls. net income growth has slowed considerable for BhartiAirtel in 2010. unlike other operators who charge per minute.150. Simultaneously.000.000. For example.000.000.000 250. Operating income has. has been capturing the new customers in the mobile services space.000 400. except in Andhra Pradesh.000 150.000 100. has enabled it to garner more subscribers1 450. This may be a serious threat for BhartiAirtel.229 369. a JV of India’s Tata Teleservices Ltd and Japan’s wireless operator DoCoMo.In 2009-2010. Tata DoCoMo.000.000 350. 21 | P a g e . declined by 4% in 2010 as compared to a 36% rise in 2009.000 200.000 396.615.

FMCGs. Source:IMRB. 2006 22 | P a g e . However the mobile services industry is rapidly evolving with value added services. while the content provider gets about 20% of the revenue from value added services (Source: IMRB Research). From a strategy perspective. data services etc. gaining significance. the network operator keeps about 60% of revenue. this should be one of the focus areas for Airtel. These are a very profitable revenue stream for the service provider. it is seen that the operator share in the value chain has been declining. Airtel has been tying up with entertainment providers. device manufacturer and the customer. service provider.Value Chain Analysis The traditional mobile industry value chain basically involved the mobile operator. insurance companies to maintain a share in the value chain. the technology/software developer retains about 25%. With M-Commerce contents becoming increasingly important in the value chain. For example in the value added services segment.

While there are several player in the market. including the new entrants. Bharti-Airtel. the DTH and Enterprise data divisions SBU’s stand to benefit from it. typically in the mobile cellular divisions. there are very few products/services which can be termed as premium products for the companies. Typically requires the company to have a specialty (differentiation product/service) to serve premium products priced at premium levels. The urban markets. Rcom and BSNL are the only players to gain a differential advantage on the account of existing infrastructural capability. 23 | P a g e . Using the existing infrastructure for Airtel-Mobile services. Maintain Specialty A high relative cost (incurred) and high differentiation area for the company. have saturated causing players to move into the digital data transfer/telemedia sectors. Considering the market structure of the telecomm sector.Differential Advantages The following matrix can be used to analyze the industry for differential advantages for each of the companies in the wireless cellular services market.

Typically include services like Direct to Home operations.Hope for Market Growth  By New Products/Services Represents .low product/services differentiated market at higher expected costs to company. 24 | P a g e . The major players in the markets and the product services they have on offer are: The market for DTH is expected to grow from 18 million currently to 35 million households by 2013. Commodities type of product with high cost and expected future revenues.

It can be observed that RCom and Bharti are able to offer lower tariffs largely due to economies attained over the 10-12 years on the account of several factors. This can be observed from the fact that Tata DoCoMo and TTSL are both loss making entities at the net-level. With a Pan-India network presence Airtel is a clear leader as far as the rural subscriber base is concerned. Others like BSNL and Vodafone are a close third and fourth. In recent times consolidation has been used by larger player to absorb the domestic operations on the newer entrants. Examples abound in BPL. An increase in operations may bring in new subscribers. 25 | P a g e . Maintain Cost Advantage The entry of new players in the telecom space has led to increased tariff wars and reduced ARPU’s. In-addition to providing voice/text services. expecting it to account for 15-20% of the ARPU. Spice Communications and Aircel which were sold to domestic/international players. By New Markets Both Reliance and Bharti-Airtel are investing heavily in the rural markets. all major players are looking to cash in on the revenues from Value Added Services (VAS). however to sustain the players will need deep pockets.

26 | P a g e . Implies the freedom to compete at compete at any prices.Outstanding Success Typically comprised by high differentiation and low cost to company. Not relevant to this sector.

During segmenting customers. Airtel can divide its customers into the following segments./month) Segments included  High consumption of Value-added-services (VAS) (>Rs.25/month)  High level of usage (>1500 min/month)  Medium level of usage (500-1500 min/month)  Low level of usage (<500 min/month)  High (>25 calls/day)  Medium(10-25 calls/day)  Low(<10 calls/day)  Corporate customer  Individual customer  Non-users  First-time users  Ex-users  Potential users  Existing users  Extremely loyal customers  Not-so-loyal customers  Disloyal customers  Teen and youth (13-30yrs)  Matured Usage rate (in terms of minutes/month) Usage rate (in terms of no. 25100/month)  Low consumption of VAS(<Rs.100/month)  Medium consumption of VAS (Rs. emphasis has been laid on customer need and benefits sought: Segmentation Basis Benefits sought (in Rs.Market Segmentation Using a combination of Behavioral Segmentation and Demographic Segmentation. of calls made/day) Type of usage User status Loyalty status Demographics (based on age) 27 | P a g e .

Targeting Evaluation of Market segments Of all the 21 market segments identified in the market segmentation. growth rates and profitability. The highest preference among the segments will be given to the profitability.25/month) High level of usage (>1500 min/month) Medium level of usage (500-1500 min/month) Low level of usage (<500 min/month) High (>25 calls/day) Medium(10-25 calls/day) Low(<10 calls/day) Corporate customer Individual customer Non-users First-time users Ex-users Potential users Existing users 28 | P a g e Sales 2 Growth Rates 2 Profitability 3 3 3 2 2 2 3 3 3 3 1 3 2 2 2 3 1 3 3 NA 2 NA NA 3 2 3 2 2 2 3 NA 3 NA NA 1 1 3 1 1 3 1 NA 3 NA NA 2 . These segments cannot be done justice with based on the three criteria listed above. Segments rating highly on the chosen criteria will be chosen as target segments. they have been excluded from the ratings. Evaluation of market segments is an important step towards recognizing the target market. Evaluation has been done on a 3 point scale wherein 3 is the highest and 1 is the lowest. 18 are evaluated based on current segment sales. Hence. The segmentation based on consumer-loyalty is used to develop better marketing strategies. Segment High consumption of Value-addedservices (VAS) (>Rs.100/month) Medium consumption of VAS (Rs. 25-100/month) Low consumption of VAS (<Rs.

mobile services can no longer be classified as uniform services. In the mature phase. Nearly all mobile phone service providers (with the exception of Virgin) are still going for undifferentiated marketing. 3.Although the mobile phone services market is growing at a rapid pace. It is best to go for differentiated marketing. Also. Thus. Airtel is in its mature phase.Teen and youth (13. The market variability is high because of the difference in amounts and types of usage the mobile phone is put to. Bharti is one of the largest companies of India and has no dearth of resources. 5. High and medium usage rate consumers (based on min/month) 29 | P a g e . Company resources Product variability Product life cycle Market variability Competitor’s strategy All these parameters are now analyzed individually and an appropriate targeting strategy is arrived at. as a brand. This is a major opportunity for Airtel to start differentiated marketing and capture specific market segments. There is a large degree of variability that can be introduced in mobile services. looking at its large consumer base. Bharti should not use Concentrated Marketing. it is clear that Airtel should change its current target marketing strategy of mass marketing and start Differentiated Marketing. 4. its best to go for differentiated marketing.3 30yrs) Matured 2 3 1 3 2 Selecting a targeting strategy The targeting strategy can be chosen based on five parameters: 1. Thus. Airtel should target the following market segments: 1. With the introduction of value-added-services. 2. undifferentiated marketing cannot be done. Airtel has been rated as the most highly recognized brand of India for the past few years. it makes sense to use differentiated marketing. The Target Market Segments Based on the analysis of targeting strategy to be chosen and evaluation of various market segments. High and medium VAS consumers 2. Looking at the above factors.

of calls/day) Corporate users First-time users and maintaining current users Teen and youth Some of these target market segments are likely to be overlapping since they were segmented using various different criteria. However. 30 | P a g e .3. the overlap does not change the importance of any of these target segments. 5. 4. 6. High usage rate consumers (based on no.

31 | P a g e . The following positioning map uses three criteria to position these brands – Quality of service. Comm Value-service Quality of service Thus. Airtel lags far behind Vodafone and Docomo in its online platforms and services. a major price war has begun. Also. We can also try and categorize Airtel on a positioning-map vis-a-vis its competitors. “Touch Tomorrow” and “Express Yourself” have been the best recognized taglines of their times. Unlike vodafone which has refrained from entering the price war. Airtel’s “Live Every Moment”. Customer Satisfaction and Value-service (inexpensive service). Airtel has repositioned itself in the minds of the consumers. it can be seen that Airtel is perceived by the customers as a brand which concentrates on quality of service provided leading to customer satisfaction. which has resulted in a decrease in customer perception about Airtel’s services. in spite of being the market leader has gotten sucked into it. Customer Satisfaction DOCOMO Vodafone Airtel Airtel Idea BSNL R. Airtel. with the entry of new players in the market. Over the years.Positioning Through various phases in time. This has resulted in a dilution of the Airtel brand.

Given the decreasing Average Revenue per User (ARPU). Airtel needs to concentrate more on the quality of services it provides to increase profitability. 32 | P a g e . Airtel must utilize its resources and reposition itself as a high quality brand with attractive options for corporate users and youth.Based on the customer targeting done. Instead of fighting a price war with established players. Airtel should also come out with useful schemes to incentivize high usage.

As we can see from the data given almost half of the consumers falls into category who spends grater than 500 rupees but less than 1000 rupees 33 | P a g e . 1) Monthly Expenditure on Mobile: Below is the data that we got from the respondents about their expenditure on mobile for a month. Place.Product. buyer’s black box and buyer’s response. Cultural Buyer's Black Box 1) Buyer's characteristics 2) Buyer's decision Process Buyer's Response 1) Buying Attitude 2) Purchase behaviour 3) Brand and Company relationship bhaviour Figure: Model of Consumer Behavior Buyer’s Black Box To understand the buyers decision making process following data was collected from 105 respondents in Jamshedpur area. The environment analysis like 4P’s has been presented before therefore we will analyze the Buyers decision making process. Promotion 2) Other: Economic. Price. The Environment 1) Marketing Stimuli : 4P's . Technological. Social.CONSUMER BEHAVIOUR Below is the basic framework of Consumer Behavior process which includes 3 stages of consumer behavior segregated into the environment.

52 25.81 25.95 49.29 34 | P a g e .52 2) Use of internet or any other method before taking a new connection: Information Search No of Respondents Percentage Internet 32 30.81 20.86 None 15 14.Amount (in Rs) Less than Rs 100 Between 100 to 500 Between 500 to 1000 Greater than 1000 No of Respondents 4 22 52 27 Percentage 3.38 Newspaper/Magazine 3 2.48 Friends/Groups 55 52.95 1 2 3 4 49.71 Montly Expenditure 3.71 20.

38 3) Awareness of other competitors in market: After collecting data . Idea. Reliance. it is known that most of the consumers are aware of the competitors in the market like Vodafone.86 14.29 30.48 2 1 52. Tata Docomo.Information Search 2. 4) Buying of multiple mobile SIM’s: Number of SIM's No of Respondents Percentage 1 89 84.24 3 0 0.76 2 16 15.00 35 | P a g e . Uninor.

24 37 24.76 5) Post purchase behaviour.86 Features Coverage Call Charges Schemes Customer Care Percentage Rank Distribution % 2.29 0 2.29 33.29 28 33.33 1 19.33 4 5 19.86 20.24 1 2 3 24.24 1 2 3 4 84.29 36 | P a g e .rating of Airtel services: Rank 1(Best) 2(Good) 3(Average) 4(Poor) 5(Worst) 21 24 35 22 3 14 28 38 23 2 11 13 39 35 7 39 20.Number of SIM's 00 15.

As we can see from the result above the buying behavior of the customer is dependent on the involvement and difference between brands which is similar as given in figure below.We can see from the Consumer Research that most of the respondents areusing Airtel but they are just using it because it is available in the market at theaffordable and comparative prices. Involvement of Consumer High Involvement Difference between brands Low Involvement Significant Complex Dissonance reducing Variety Seeking Few Habitual buying Figure: Four types of buying behaviour 37 | P a g e .

The telecom sector was predominantly under public sector control at this time. BhartiAirtel was founded in 1995 as a public limited company4.ASSUMPTION IN PLANNING PROCESS Market potential: Planning and management of mobile services requires an understanding of the factors that are responsible for the evolution of the market. The manufacturing sector opened in 1984 . 3. TRAI. Infact the first mobile phone call was made in India in 1995 on a Nokia phone over Nokia network. Steps were taken to allow private players in telecom domain1. Policy environment started changing from 1994 onwards. timing and speed of adoption. India ranked 14th in the world in 1995 in terms of number of main telephone lines1. The most important factors for the purpose of capacity planning are market potential. 38 | P a g e . National telecom policy was announced in 1994. From the point of view of telecom potential in India. 4. Mobile phone manufacturing firms (Nokia) started its operations in 1995 3. This provided impetus for development of telecom sector:  The industry transited from monopoly to duopoly. established in 1997  NTP in 1999 stimulated migration from high-cost fixed licence fee to a low-cost revenue sharing regime . this was a momentous era due to following reasons: 1. as the Government mandated two fixed and two mobile operators in each circle in 1995  Independent regulator. 2.

Forecast Assumptions: The most important criteria for establishing business in a capital intensive sector like telecom is correct analysis of market demand and potential. Gradually. owing to development of better technologies and dissemination of information many people consumethe innovation and the diffusion process further unfolds. Mobile density was close to 0. In fact. The proportion of cellular subscribers total number of telephone subscribers (basic plus cellular) was 0. For this it is important to know about the theoretical models of diffusion of innovations in the market. Also it is important to develop understanding of future trends. private participation was increasing and being encouraged by the conducive policies of government. Finally. started in the late 90's in India. Successful innovations tend to follow a sigmoid or S-shaped curve. In 2002 this figure was around 14. cellular mobile telephones subscribers in India were around 77 thousand in 1995. During this time when Airtel just started. These are the people who are highly involved in buying process and like to experiment and are the first adopters of new technologies and innovations.003 in 1995. be able to develop reasonable estimates of patterns and rates of adoption etc. New technologies were being adopted by India. during the maturing phase. 39 | P a g e . in terms of overall size of sector and advancement of technologies used. During the initial stages only a few members of the society adopt the innovation. The effects of adoption of liberalization policy were starting to show. the overall development of telecom industry. the rate of diffusion goes down and diffusion curve reaches a saturation level.6 and has tremendously increased since 1.6 percent in 1995.This was the most crucial time for players who wanted to make a niche in telecom sector in India.

Figure: Innovation Life Cycle Hence. Hence. Figure: Projections of Mobile Density in India Using these growth and market potential may be forecasted and analysed. Logistic and Gompertz sigmoid curves are the most commonly used ones. forecasting and modeling may be done using them. The assumptions used in the analysis are: 40 | P a g e . it can be hypothesized that mobile density growth can be modeled on a sigmoid or Scurve.

its main competitors are Idea. 3) Areas of market growth. the 41 | P a g e . maturity and decline: commencement of Airtel operations along with many other incidents was responsible for developing Indian telecom market. profitability was definite. India's market is still growing and will continue to do so for another 10 years at least before it reaches maturity phase. b) Early adopters are usually developed countries and they show a lesser reliance on mobiles due to high switching costs. intermediate and long planning horizons. intense price competition in the market combined with growing mobile penetration offer a unique profitabile scenario.a) For any country the saturation level will depend on whether it is an early or late adopter of the technology. Airtel still occupies a mjor chunk of Indian market (~ 30%). Vodafone. c) This requires extensive research and analysis by the company as described above. BSNL and now in many areas Tata Docomo and Reliance GSM. Currently. Its sales increased by 17% while EBITDA rose 3% in the first quarter of 20107. Also. In fact it was one of the earliest private players and had considerable first-mover's advantage. d) The company must obtain inputs primarily on the following: 1) Competitive threats: no major threats when Airtel started operations. 2) Profitable opportunities: immense scope for profit when it started as entire untapped market was waiting to be catered to. With government policy impetus. with its Zain acquisition. Currently. Other Assumptions: a) The marketing and business strategies must be aligned over the short. b) The strategy must reflect the company's mission and must be used to achieve the goals set by management. c) Late adopters are mostly developing countries and they show a lesser reliance on fixed line phones due to high infrastructure costs. The studies done on Indian mobile sector using different models confirm the theoretical pattern of growth. When it started operations. Airtel has no dearth of profitable opportunities with 15 African nations' markets in its pockets. d) Various mathematical models are used by companies to forecast demand and growth patterns.

7 billion rupees a year ago7. Airtel has invested heavily in infrastructure and marketing campaigns to promise and deliver quality communication facilities. As the average customer is likely to be quite removed from the intricacies of mobile technology. it also reduced the call rates on national roaming especially on incoming calls. Currently. 42 | P a g e . intense price wars and more number of players in the market led to a loss of 32% in its profit. It was the first to offer lifetime prepaid connections. special schemes and discounts offered vary between circles based on needs of customers in that area. the onus is on the operator to identify and provide new services.metros were the main and focal areas of growth. 2010 form 24. Besides. Recently. Figure: Customer Needs Analysis 4) Latent and explicit customer needs:telecom industry particularly cellular operations and services have long transcended the basic utility of communication. Its net income shrank to 16. It also offered differential pricing based on time of call. It also keeps launching a lot of full talk time and various discounted call-rate and messaging schemes from time to time. 5) Ideas for distributing and pricing: even though Airtel is competitively priced. Airtel aggressively revamped its pricing and marketing strategies to become more competitive.8 billion rupees in the first quarter that ended on June 30. Mobile banking especially microfinance in rural areas is an example of such innovation. Indian market already boasts of having the lowest mobile tariffs in the world according to International Telecom Union. the focus is on maintaining quality of service in cities while expanding base in rural areas. Recently. Of late mobile operators are increasingly venturing into internet and other wireless services along with a variety of value added services.

Airtel has maintained a dedicated and strong distribution channel by way of distributors. The distribution channels under the company include Direct Selling Associates. Figure: Cellular Operator Distribution Channel 43 | P a g e . Airtel also offers sales based remuneration to its distributors and franchisees. Corporate Selling Associates. Franchisee Selling Associates and Airtel Relationship Centers. and franchisees and company owned Relationship Centers which are 'one-stop solutions' shops'. wholesalers. Example: for prepaid connections in all circles distributors and franchisees are paid 15-20% of the value of card sold.

It is an established product category with high market penetration and high profitability. additional facilities and MCommerce. it is a challenge to maintain its market share in view of the consistently evolving technology and high degree of competition. 44 | P a g e . Though Airtel is the overall market leader in India.THE PRODUCT STRATEGY Airtel’s mobile (GSM/CDMA) SBU is a cash cow for Bharti. the focus was on providing the mobile connection while now the focus has shifted to enhancing the customer’s experience on his mobile phone. Airtel’s profits in this category have been growing yoy. In the 1990s. This explains Airtel’s focus on value added services. Airtel’s mobile SBU presently serves more than 130 million customers across India. The Product Line: BhartiAirtel’s product line has changed over the years. STAR QUESTION MARK Market Growth CASH COW DOG Market Share BhartiAirtel’s product strategy revolves around maintaining its “Star” status in the market. BhartiAirtel’s product focus is three fold within the mobile services space with a view to provide a differentiated product to its customers:  Provide high quality cellular service to its customers and expand its network across the country.

Airtel is looking to expand its footprint in rural India with a large untapped market.Zain in Africa. With a high level of market penetration in the urban areas. blackberry services. Features such as M-Commerce and plans such as Freedom plan and advantage plan are expected to help reach this market segment. Freedom Plan). M-Commerce are a part of Airtel’s product development strategy.g. cheaper roaming rates. 45 | P a g e .  Providing additional facilities to its valued customers (International calling. Market Penetration: Airtel is expanding its rural footprint and targets greater market penetration in rural India where more than 60% of the potential is untapped. STD calling. Market Development:Airtel is creating new markets via its inorganic growth strategy. Growth Strategy: Existing Market Market Penetartion Product Development New Market Market Development Diversification Existing Product    New Product Product Development: The Value added services. E. Provide innovative services and features to enhance customer experience on their mobile phones (Value Added Services).

1999-2001 2001-02 2003-10 Change . Value Communicated: Their promotion and advertising strategy has evolved over time as:  1995-98 Positioning in premium catageory. The IMC programs used by the company have been:  Advertisements: A large chunk of the budget used for the promotion of the Airtel brand especially in the mobile telephony has been used creating and distribution of ads. Several youth icons hired as brand ambassadors Intent on giving brand a Human touch. Famous A. "The power to keep in touch" "Airtel celebrates the spirit of leadership" "The first choice of the corporate leaders" "Touch tomorrow" Change from regional to pan-India outlook. Added emotional appeal to the brand. In-fact the theme of each of these has also changed. Projected as an aspirational and lifestyle brand. Associated with leadership.Rahman Airtel musical Signature tune to increase brand recallability Clear focus on emotions. "Live every moment" Appeal to the masses. "Express Yourself" Figure: Value Communication over the years 46 | P a g e . Expanding to new segments.Strategy – Marketing Communications Programmes Integrated Marketing Communications Programs Integrated marketing communications (IMC) is a mix bag of communication strategies used to convey a holistic and consistent image of the company.New telecom policy of 1999 replacing license fee with revenue sharing scheme. aimed at targeting the elite. establishing the brand as a quality of life product. Airtel has used several IMC programs to including both offline and online marketing channels to identify customer insights and develop the right strategy to forge a strong brand-customer relationship.R.performance and dynamism.

and tariff and broadband plans at Rs 99/-. easy recharges. DTH under one single Brand name. The brand was projected to the elite and corporate as a symbol of leadership and excellence. Modelled as one-stop shop to all customer solutions and queries. 999/. GPRS.eRs. The price wars have escalated in the recent times. Monthly GPRS. at different stages in its growth can be classified under:  Penetration Pricing: Done by Airtel in response to the aggressively lower pricing-tariff strategies adopted by new entrants like DoCoMo and Reliance. This has however also led to buy-outs of several new entrants on the account of falling APRU’s. blackberry option.  Psychological Pricing: Most of the value recharge at smaller denominations i.  Co-Branding: Airtel has done several ties ups with online community sites (Hungama.etc.com).  Umbrella Marketing: Use of umbrella marketing by Bharti-Airtel to promote several of the its products namely Airtel broadband.Airtel Silver Credit Card) etc. apply for new connections and touch and feel new handset models. 30/-.  Customer Relationship Strategy: First cellular service provider to start customer call centres (Airtel Connects) where customers could pay their bills. 10/-.  Price Skimming: Adopted by Airtel during the initial years when competition was limited and scope for expansion limited. publicprivate (Incredible India-Taj-Hotels-Airtel-Cox & Kings). Though product innovations continue as hello tunes. fall under this category.  Product Line Pricing: Pricing to reflect benefits of the individual components of the plan. Product to Services Branding: Shift in the strategy from product based to Services based branding. Airtel Live etc. 47 | P a g e . Pricing Strategy Some common strategies used by Airtel over the years. media channels (MTV).etc. are aimed at getting emotional rather than rational appeals. to further the visibility of its brands. 60/. The strategy has become irrelevant in recent times on the account of increased number of competitors in the market. Most topups in like SMS packs. Credit cards (ICICI Bank .

agents. the only sustainable competitive advantage can come from the strategy/means used to sell.e. are helping win networks and further consumer bases. Internet etc. Further plans of expansion in semi-urban India. A definitive advantage to this can come by selecting the appropriate mix of distribution channels – direct sales force. Value added service. mobile advice on better agriculture techniques etc. Several initiatives in this regards i. and mushrooming number of service providers makes the distribution networks all the more important. Channel Strategy Channel Strategy comes as of extreme importance due to the high services oriented nature of the telecomm industry. retailers. Promotional Pricing: Used at several occasions to promote a new tariff plan. real time pricing of farmer produces in the markets (getting quotes). Some of the initiatives taken by Airtel in this regard include:     Customer Relationship Centres Facility for Mobile banking (using m-cheques) Recharge using pre-paid and Magic coupons Airtel Live using Internet In addition to these Airtel is rapidly looking to expand in Rural India and in this regard is energizing its sales force network and distribution centres (at local Kiryana’s) to better understand the customer base. When each company in the telecomm sector is selling similar products and virtually the same pricing and at same cost incurred. Roaming charges etc. 48 | P a g e .

Research Strategy The typical marketing research methodology adopted by Airtel and others in the telecommunications industry includes: •Density •Affluence •Age Population Purpose •Hypothesis testing Publications •Sales and ditribution reports •Competitors annual reports Procedure •Sale at retail outlets •Customer relationship centers Figure: Research strategy matrix 49 | P a g e .

Moreover. and ultimately increase sales demand through word-of-mouth promotion This will not only create the awareness of the new offers introduced by Airtel in the market but also it will help to analyze or estimate the market perception of any type of new addition. Idea came up with new technology like 3G much earlier than Airtel  Carefully monitor major competitors pricing and promotional activities and entry into the 3G market. Therefore. there is good chance that the competitors like Vodafone. there is also a possibility of adopting new offers specially catering to rural sector and scrapping off some features which are not useful to rural market Problem 4: When we consider of adopting new technologies to improve the service offered by Airtel which is in tune with the objective of this marketing strategy. Problem 1: If for any reasons the new launches done by Airtel i. Following are the points that should be taken in consideration while thinking of making a contingency plan. and prepare recommendations and potential adjustments to our marketing mix to ensure our leading market position and healthy sales are maintained in the long-run. Problem 3: Expansion in rural areas where the hold of Airtel is not much as compared to other competitors. then there is a possibility of entering of new firms and eating up market share.  Problem 2: If we consider the growth in market share of the company. 50 | P a g e .e. the new mobile offers and packages are not successful or able to compete with the other competitor’s strategies. this problem can be solved by product differentiation both in vertical as well as horizontal direction. refrain from adopting Airtel as there mobile channel partner    For tackling this problem .MONITORING & CONTIGENCY PLANS A marketing strategy should always have a contingency plan for situations when they could go against the planned strategies.  For stopping of new entries into this segment the only thing is to increase the entry barriers but since in this market the competitors are so many that there is always a good chance of emergence of new competitors. Airtel can either go for pricing strategy where the prices can be made cheaper vis-à-vis other competitors Or the company can focus on promotion of its service in rural market in an aggressive manner.  This problem can be solved by adopting the promotional or free trial offer marketing strategy where the new offers can be provided to selected customers to stimulate brand and product awareness.

This is going to be the biggest cash generating segment and Airtel must consolidate its position here. Airtel needs to further its efforts of providing users the best possible VAS. Providing more useful value added services (VAS). This can be achieved by entering into tie-ups with various companies.  Airtel must ensure that it does not lose its current users to competitors. The first mover is bound to get an advantage.     Provide special incentives for Airtel-Airtel calls. This can result in a major source of revenue for Airtel and will do wonders for customer satisfaction and customer perception of brand quality. The conservative nature of the typical rural Indian consumer must be kept in mind. Airtel’s marketing team needs to innovate constantly. the marketing team must emphasize on the following aspects:  Refrain from using pricing as a marketing tactic. Decreasing prices further is not going to help retention of customers. In the foreseeable future.Recommended Marketing Strategies for Airtel With the entry of multiple new players in the sector and an ever decreasing ARPU. VAS has emerged as the most important source of revenue for mobile operators. Airtel should aggressively increase its network in the rural sector and market itself before other players enter the market in a big way. Concentrate on the untapped rural market segment. With the ongoing price war. This can be ensured by increasing quality of service provided. Any further aggressive pricing strategies on Airtel’s part will only do further damage. 51 | P a g e .  Airtel must differentiate services for consumers with high usage rates by providing them special band-width such that they do not face increasing problems like call-drops and network-jams. the price levels have become unsustainable anyways. Build strong corporate contacts and offer more benefits for corporate users. This is a proven way of expanding customer base and has been exploited by Reliance Communication and Tata.

given India’s age based demographics. Most new consumers getting added to the mobile services market are young teenagers who should perceive Airtel as their first choice. 52 | P a g e . Also. maintaining a high youth penetration is extremely important. Airtel must position itself as a youth brand.

3-billion outsourcing project”.bloomberg.cms (h) Ernst & Young. Prentice Hall. 13th ed. Agnihotri & Haque. 2010 : http://economictimes.airtel. ISBN 978-0131469181 53 | P a g e .gov. India 2012 – Telecom Growth Continues : https://webforms.com/lesson-store/lesson-pricing. April 1.html (k) Amit Ranjan Rai & Aarti Menon Carroll. “Airtel vs Hutch: And the winner is.com/mkc/marketingcommunications/ 2.in (g) The Economic Times.html (f) Bharat Sanchar Nigam Limited: http://www.bsnl.2010 http://www.REFERENCES 1.int/ITUD/ict/statistics/ict/index. Bloomberg.outsourcing-project/articleshow/5748843.itu.in/about-nokia/company Ketaki Gokhale. Books: (a) Kotler.bnet.multimediamarketing. Armstrong.wikipedia. “Ericsson wins Airtel's $1.com/Content/vwWFPreview/GL/en/India_2012:_Telecom_growth_co ntinues?OpenDocument (i) (j) Nokia : http://www.com/cp/developing-a-channelstrategy/168339 (m) Pricing Strategy. Jan 04. August 11..com/news/2010-08-11/bharti-airtel-first-quarter-profit-falls-32-asprice-cuts-erode-margins. http://www. http://www.in (d) Communications in India: http://en.bharti.html (n) Integrated Marketing Communications. Principles of Marketing.com/money/2006/jan/04spec.” .nokia.htm (l) CBS Interactive Business Network. Rediff Business.in (b) Bharti : http://www. “Bharti Airtel First-Quarter Profit Falls 32% as Price Cuts Erode Margins”.com/news/news-by-industry/telecom/Ericsson-winsAirtels-13-billion.org/wiki/communications_in_india (e) International Telecommunications Union : http://www. Sites from where data is collected: (a) Telecom Regulatory Authority of India : http://trai.indiatimes.2006 http://www. http://www.marketingteacher.ey..rediff.co.co.com (c) Airtel : http://www.

Survey of Indian Industries – 2010 (b) Indian Brand Equity Foundation – Telecommunications Report. Committee on India: Vision 2020 – Telecom Sector in India: Vision 2020 (d) Sanjay Singh. The diffusion of mobile phones in India. ISBN 0-471-26867-4 3. John Wiley & Sons. Inc . Dr. April 2010 (c) Manas Bhattacharya (IES).(b) Kotler. Reports and Reference : (a) The Hindu . Sanjay Singh. 2003 54 | P a g e . Marketing Insights from A-Z.

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